On a typically quiet August Wednesday UK markets open on the back foot with little corporate activity around to inspire investors.
The FTSE 100 index begins the day by opening around 20 points, or 0.3%, lower at 7,546.35, with mid cap FTSE 250 and small cap indexes also posting modest reverses.
On currency markets, the pound is flat against both the dollar and euro, at $1.2903 and €1.1149 respectively.
What little company news that is around is mixed, with poor results posted by floor coverings firm Headlam (HEAD) offset by more positive announcements from cyber security firm Avast (AVST) and fancy home furnishings and womenswear company Laura Ashley (ALY).
Headlam saw like-for-like revenue fall 5% in the UK in the first half and cautioned that its full-year results would likely be at the lower end of current market expectations.
Reported pre-tax profit of £16.4m shows a modest decline versus restated numbers for the first six months of 2017, although both sets of figures are awash with various adjustments. But investors remain nervous about a gloomy outlook, marking the stock around 5.5% lower in early trade at 426.5p.
MAIDEN FIGURES FROM AVAST
There’s a tonne of adjustments for investors to work through in interim figures from Avast too, the owner of the popular AVG mobile and computers internet security programme. These are the first set of numbers from the company since its flotation in May and they show higher billings, revenue, profits, cash flows and user numbers.
The stock has been out of favour with investors since its IPO as worries over growth held sway but the stock rallies 3.4% on Wednesday to 237.4p, going close its original 250p per share issue price.
Also higher are shares in Laura Ashley despite falling profits and all too familiar talk among retailers of difficult trading conditions. In the year to 30 June pre-tax profit of just £100,000 was chalked-up, down from £6.3m in 2017.
Total like-for-like retail sales fell 0.4%, although clothing sales climbed 9.7%. There is also the accompanying news of a £30.3m property sale in Singapore, although most of the cash will go to repay borrowings with a little left over for extra working capital.
LEADING MOVERS
Housebuilders head the FTSE 100 leader board led by the 1.3% advance of Persimmon (PSN) to £24.71, still bolstered by yesterday’s news. Budget flyer EasyJet (EZJ) is the blue-chip’s biggest loser in early deals, its share price around 3% on the back foot at £15.66.
Upbeat interim results lift building services firm Grafton (GFTU) to the top of the FTSE All-Share winners, the stock up more than 5% at 818p, while car dealer Pendragon’s (PDG) rough 5% decline to 25.3p sees its share price top the All-Share losers on Wednesday.
Elsewhere, outsourcing group Capita (CPI) has named bus and rail company Go-Ahead’s (GOG) Patrick Butcher as its chief financial officer. He’ll be crucial to new boss Jon Lewis’s plans to rebuild the once respected British business.
